Newsquest gets £444m backing

US-owned regional newspaper group Newsquest launched a £444m cash or loan notes bid for rival Newscom at 1800p a share to create a 286-title empire.

The deal is recommended by the Newscom board and would bring huge gains for investors who have seen their shares more than double in a year. They closed at 16621Ú2p before the bid was announced.

Trinity Mirror and Johnston Press were rival suitors for Newscom. Newsquest, owned by US publisher Gannett, has got in first and won the backing of the Newscom board. That is a flying start but does not rule out a counter-bid.

NewsCom's flagships are the Southampton Daily Echo and the South Wales Argus.

It turned down a £300m bid from Newsquest last December saying it 'grossly undervalued' the company.